Since there is a limited amount of gold available, it is unlikely that it will ever be left without support. In fact, gold has maintained constant purchasing power over time, while fiat currencies cannot make the same claim. That far exceeded the fair value of gold that the United States was able to hold it for 37 years, until August 15, 1971, when Richard Nixon decided to completely abandon the gold standard instead of revaluing it. The functional reason why central banks do not opt for the gold standard is that gold is a poor circulating currency, since it is not very durable and is easy to counterfeit.
Gold coins are so soft that people “sweat” them out simply by shaking a bag of gold coins and selling the dust that comes off. The government that issues the currency links its value to the amount of gold it holds, hence the desire to have gold reserves. Despite the fact that the gold standard has been abandoned, gold as a commodity can act as a substitute for fiat currencies and be used as an effective hedge against inflation. On the contrary, countries that are large importers of gold will inevitably end up with a weaker currency when the price of gold rises.
According to this system, Jim says that the dollar (and Bitcoin) would be the big losers, and he says that gold is as relevant as ever considering that many of the world's developing countries are accumulating gold. Even in Utah, where they passed a law stating that gold coins are legal tender, no one can use gold unless they want to lose a lot of money. This is remarkable because both Russia and China have been accumulating gold reserves at a rapid pace compared to other countries, and the BRICS countries are gold producers. To use gold as a standard, a country has to set the value of gold high enough that people (or countries) are willing to keep their currency instead of gold.
Paper money had to be backed by an equal amount of gold in their reserves (then, as now, countries had reserves of gold ingots available). For example, if there is high demand from an industry that requires gold for its production, it will cause gold prices to rise. At the end of the 19th century, many of the world's paper currencies were linked to gold at a fixed price per ounce according to an international monetary system known as the gold standard. Therefore, a country that exports gold or has access to gold reserves will see an increase in the strength of its currency when gold prices rise, as this increases the value of the country's total exports.
While there is no benchmark in which you can participate anywhere in the world, you can diversify your wealth into new asset classes and internationally to achieve some of the benefits of a real gold standard. The media have often spoken of the opulence of being able to buy gold with a debit card, presenting it as the domain of wealthy sheiks who have nothing better to do than buy a few gold bars on a Tuesday afternoon.